88-404 Economics of the Internet and the Digital Economy
9 units, Carnegie Mellon University
Networks and information play a major role in the rise of the digital economy, and they are challenging the economic theory. Information goods are anything that can be digitized. They stem from many industries, from media to creative industries, as well as finance or scientific research. Then, the diffusion and commercialization of information goods rely heavily upon network infrastructures, both technological and social. Hence, information as software or fluid and networks as hardware or pipe have interdependent economic properties that must be understood jointly to carry out the right economic strategies and policies. In this course, we will study these properties via three perspectives. First, from a user perspective, we analyze what makes the value of information and networks. Second, from a policy maker perspective, we study the various options available to ensure constant innovations and a fair competition. Third, from a firm perspective, we observe how the networked information economy influences innovation and production processes. After this course, you will be able to express a wellreasoned view on questions such as why is it a battle over smartphone patents What are the answers to the Internet piracy of creative contents What are the benefits of open source development
Prerequisites: 88-220 or 73-100
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